The Hotel Industry is a key pillar of both
domestic and International Tourism.
Globally, it is considered as a major
contributor to GDP, foreign exchange
earnings, creation of jobs as well as the
biggest multiplicator of jobs. In India
especially, the hotel industry is a key driver
of jobs especially through 90% if its inventory
which is in the economy, budget or midmarket hotels. In the current scenario, almost
70% of the jobs are in danger directly within
the hotel sector and several in other hotel
related support sectors. Thus, we request to
Government to support Tourism Industry.
A complete GST holiday for tourism, travel
and hospitality industry for the next 12
months till the time the recovery happens.
Removal of fees for any upcoming licenses,
permits renewal, excise exemption for
liquor for the hospitality and travel industry
across the country and also sought interest
reduction or subvention on term loans and
working capital loans.
We are particularly appreciative of the
hotel property tax rebate of 30 percent,
the corporate income tax rebate as well
as the job support scheme. Hotels have
high operating costs and manpower is the
largest component, so these measures will
help to some extent.We are hopeful that the
recovery will take place by 2021. However,
these measures may not be enough given the
uncertainty over how long the virus will last
and if it will lead to a protracted economic
downturn. Thus the government may need
to introduce additional relief and support
measures to help the tourism sector if the
outbreak and the ensuing economic damage
worsens. The Government could perhaps
also explore a temporary cut in GST rate for
the travel and tourism trade as well to help
businesses manage cost.
Already stimulus packages are offered by the
different countries like US, China, Germany,
Australia, Canada, Malaysia, Singapore,
Scotland, Brazil, Malta, Hong Kong etc., to
the economy in particular and in some cases to
hotels in particular.
Given the threats that the hotel and travel
industries are facing due to COVID-19
pandemic and the huge potential the
industries offer for growth and employment.
Potential shock to the livelihood of millions
working in our industry is enormous and
we will need to think in terms of forming a
task force together with the industry and the
government to establish a path for normalcy
in general and build confidence in this
industry in particular.Across the world, the
hospitality and travel and tourism industries
are considered the backbone of the global
economy, creating 10% of total global
employment.
We request both Central and State
Government to come up with supportive
measures for the survival and revival of the
Tourism Industry
2020-11-13